Does your prospect’s Crime policy cover forgery? Think twice before answering, it’s a trick question.

A client of mine recently asked me to review a Crime policy, from a well known carrier which generally provides broad coverage on its forms, including Crime. The declarations page scheduled a limit for Forgery. So far so good.

The policy defines Forgery, as expected. But the definition is not as contemplated:

“Forgery, or Forged means the signing of the name of another person or organization with a handwritten signature physically affixed directly to a Covered Instrument or Covered Personal Instrument, without authority and with the intent to deceive”

Wait, a handwritten signature? On a physical document? In which century is the policy term? Docusign was established in 2003. Banks started online bill payment services in the 1990s. Faxed signatures have been accepted since the 1980s. Telegraph signatures date back to the mid-19th century. But this policy only covers quill and parchment!

The moral of the story is: read those policy terms. Even a good coverage form from a good insurer can fail to be updated to current technologies and standards.